Annuitant

What Does Annuitant Mean?

An annuitant is a person who receives payments from an annuity. In the context of insurance, annuities are commonly offered by life insurance companies. In such cases, the policyholder contributes to the annuity and typically becomes the annuitant once the annuity matures and it’s time to begin receiving regular payments. Because most annuities sold to consumers come from life insurers, anyone shopping for one usually starts by comparing the best life insurance companies that also offer annuity products.

Insuranceopedia Explains Annuitant

Annuities provide individuals with a way to plan for retirement and secure a fixed source of income. Typically, the annuitant is the owner of the annuity, and many companies require this arrangement. However, some life insurance annuities offer options to continue payments to a different beneficiary after the original policyholder’s death. Naming someone correctly on an annuity follows many of the same rules as a life policy, so it helps to read up on life insurance beneficiary rules and common mistakes before signing the contract. These annuities ensure that the money paid into the annuity doesn’t go to waste after the policyholder passes away and can benefit a loved one designated as a beneficiary. Such annuities can also supplement the death benefits from the primary life insurance policy.